Is this trend a good trading opportunity?

Will Randgold Resources reverse, or will it continue to march upwards beyond 5,886p?

• The chart shows price action since early July.
• Currently trading at 5,230p (as of the time of writing).
• Randgold Resources shares are -34% from 2018 highs; +6.8% from 2018 lows; -29.5% year-to-date.
• News of a merger between Barrick Gold and Randgold Resources helping the stock rise.
• Shares in a 10-day uptrend (+12.3% in the last week).  Will the momentum continue?

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Trading Randgold Resources – An Example

Let’s say the trend appeals to you, you think it’s likely to continue. You decide to buy exposure to £10,000 worth of Randgold Resources using a CFD, at the current price of 5,230p. To do this, you need £2,000.

Let’s assume Randgold Resources trend continues to 5,886p July highs (+12.5%). Your profit would be £1,250, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 8% below the current price. Randgold Resources falls 8% and hits your stop-loss. Your loss would be £800.

This is provided for information purposes only. It should not be taken as a recommendation.